Finance

Our Finance Solution Library Page contains so numerous questions, essay, problems and case studies that help in developing an in-depth knowledge on the subject.

Put it simply, finance deals with application of financial, economic and accounting principles which help in maximizing wealth and overall value of an organization. In fact, maximizing the wealth is regarded as one of the primary objectives of an organization. The value of a firm can be measured by the market price of shares of the company. Many a times, the higher the share value, the better the company’s performance, financially.

Capital Structure: In order that a company performs better financially, it must have a good capital structure. Capital structure is the way in which a corporation buys its assets by combining equity share capital and debt. While equity share capital belongs to shareholders, debt is provided by a third party. Our solution library has various questions, problems and case studies on capital structure, which make it easier for you to understand the concept thoroughly, both theoretically and practically.

Working Capital Management: Working capital management is a short term financial activity which is used for running the day to day activities of the firm. It is the difference between current assets and current liabilities. There are several problems and scenario analysis questions on working capital in our solution library dealing with working capital management.

Time value of money: Time value of money plays a crucial role in finance. Time value of money gives rise to various concepts such as present value (PV), future value (FV), net present value (NPV), internal rate of return (IRR), profitability index (PI), etc. Each of these concepts help in calculating the earning capacity or potential for money invested. In other words, one make a benchmark for earning capacity or rate of return for an investment by using the time value of money. Several problems, short answer questions, essays, cases and scenarios have been covered under time value of money in our Finance Solution Library page.

Financial Statement Analysis: Financial statements of a firm include income statement, balance sheet and cash flow statement. Each of these statements provide accounting and financial information which is used to arrive at the financial position of the firm with the help of certain tools and benchmarking techniques. Ratio analysis is one such practice used to know the financial position of a firm. Our solution library has several essays, problems, scenarios and cases on financial statement analysis which offer a comprehensive understanding of the topic.

Derivatives: Derivatives are financial instruments which are calculated by an underlying asset. These can be stock and commodities, government bonds, etc. The questions and problems covering derivatives in our solution library range from Options and Futures, Forwards, Swaps, Currency options and Futures, Hedging Strategies, etc.

Mergers and Acquisitions: Mergers and acquisitions play a major role not just in corporate strategy but also financially. Merger is merging two or more companies into one and acquisition is one company acquiring one or more companies and making them its own. Various questions and problems under merger and acquisitions can be found in our finance solution library.

Problems and case studies in finance: Our Finance Solution Library contains several problems and case studies which deal with topics mentioned above and more.

 

Change In Exchange Rates and Influence on Multinational Corporations

QuestionVirtually every operation of the MNC can be influenced by changes in exchange rates. Identify and describe at least four of the corporate finance functions (from ...

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Corporate Acquisitions And Subsequent Losses For The Acquiring Company

Question Many corporate acquisitions result in losses to the acquiring firms' stockholders. Accordingly, why do firms purchase other corporations? Are they simply paying too much ...

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Change in the Price of a Bond When Yield to Maturity Increases

Question An 11-year, 4.5 percent coupon bond pays interest annually. The bond has a face value of $2,100. What is the change in the price of this bond if the market yield to matur...

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Corporate Finance Solution

Corporate Finance Solution Harvard in-text citation and Referencing used for this paper.   Question Part A: Discuss the motives behind corporate restructuring and evaluate...

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Calculation Of True Share Price For Diversification

QuestionGeKay stock is worth $100, or $80, or $60. Investors believe that each case is equally likely so that the current share price is the average, namely $80.  Suppose Mr. ...

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Calculation of Uncollectible Accounts, Bad Debt Expenses And Unrealized Losses On Net Income

Question1. Taylor Corporation reported on its 2012 statement of common stockholders’ equity, that unrealized losses on available-for-sale investments had increased by $11,324...

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Calculation of Value of a Share of Stock

Question Polly Corporation just paid a dividend of $1.65 per share. The company expects that the dividend will grow at a rate of 8% for next four years. After year four it is expe...

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Calculation Of Value Of Firm With EBIT Tax Rate Cost Of Capital Given

QuestionThe Winter Wear Company has expected earnings before interest and taxes (EBIT) of $2,100, an unlevered cost of capital of 14% and a tax rate of 34%. The company also has $2...

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Calculation Of Value Of Forward Rate Agreement

QuestionOn the 15th of May 2013 you enter a Forward Rate Agreement (FRA) to borrow on the 15th of September 2013 $1,000,000 for 8 months at a fixed annualized interest rate of 5% (...

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Characteristics Of Contingent Liabilities

Question1. Contingent Liabilities must have the following criteria – select all that apply.A) The obligation is certain to require payment at some point in the future.B) The ...

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Correlation Between Assets And Yield Diversification

Questiona. Suppose we have two assets, A and B. What correlation levels between the two assets will yield diversification benefits in terms of portfolio risk reduction? b. At what ...

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Characteristics Of Service Companies

Question 1. Better decisions can come from a well-designed activity-based cost system because ABC information Emphasize how managers can achieve higher sales. Is easy to anal...

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